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DGTX: etisalat by e&’s end-to-end VAT solutions for your business in the UAE


02 Nov 2022

In 2018, the UAE government introduced, for the first time, the Value-Added-Tax (VAT) levied on all services and products sold within all its seven emirates.  At 5%, the UAE’s VAT rate is the lowest in the world and has successfully been embraced by various companies doing business in the country. According to UAE government statistics, more than 332,000 have so far registered under business and tax groups for VAT.

Here’s a key point you must always keep in mind about the VAT in the UAE. If your annual business revenue is between AED187,500 to AED375,000, registration for VAT is voluntary. Any business income in excess of that amount, VAT registration becomes mandatory.

Filing VAT registration is easy but complying with other requirements associated with its implementation is not. Remember, all businesses with VAT registration, whether it’s located on the UAE mainland or in any of the free zones, must file their monthly/quarterly VAT return to the Federal Tax Authority (FTA). 

Non-compliance could have consequences in the form of civil or monetary penalties as follows:

  • Non-registration – Dhs20,000;
  • Late filing of tax return – Dhs1,000 (first offense) and Dhs2,000 (second offense within a period of 24 months);
  • Non-disclosure of tax on imports – 50% of the total unpaid tax;
  • Submission of incorrect return – Dhs3,000 (first offense) and Dhs5,000 (repeated offense);
  • Non-disclosure of errors on tax record/s – Dhs5,000 (first offense) and Dhs15,000 (repeated offense);
  • Non-maintenance of proper tax records – Dhs10,000 (first offense) and Dhs50,000 (repeated offense)

Apart from having business-friendly policies, the UAE’s ideal location bridging the East to the West, makes it one of the best business hubs. Not only will it save your company time, but money and resources as well.

At least five major global organisations specialising in assessing competitiveness have ranked the UAE among the top 10 countries in the world in 28 competitiveness indexes related to finance and taxes. 

If navigating VAT in your business feels complicated, there’s help from independent tax agents or you can opt for the highly reliable experts from etisalat by e&’s DGTX, the end-to-end VAT solutions for your business in the UAE.

You have a few options from etisalat by e&, depending on the type of service you want or need. 


For AED275 a month, etisalat by e& will take care of your VAT filing and reporting. This basic package comes with a cloud-based accounting software; mobile App (iOS & Android), a certified Federal Tax Authority Tax Agent; Easy snap and post, and; documents archiving for 5 years.

Upgrade your DGTX package to AED500 a month, and you’ll get all of those plus more services which include VAT adjustment, amendment and reconsideration; VAT refunds processing; VAT voluntary disclosure and inventory tracking.

Choose the DGTX monthly package of AED1,000 a month, and you will enjoy all of those VAT-related services plus full cycle accounting; import & export files; bank reconciliation as well as reconciliation of PDCs.

Sounds good? Well, it could still get better if you opt for the VAT Filing Service-Platinum of AED2,500 per month. This platinum service comes with the perks of having a VAT accountant visit, full-cycle accounting and bookkeeping, and combined statements.

The UAE was ranked first in the Real Personal Taxes Index, the Collected Personal Income Taxes Index, the Low Tax Evasion Rate Index, the Collected Indirect Tax Revenues Index, the Lack of Wastefulness in Government Spending Index and the Best Time to File Tax Returns Index. 

Now, that’s an assurance that you’re in good hands with the right economic foresight. Business with conscience.